Disney buys $1.58 billion stake in BAMTech

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The Walt Disney Company is ending its streaming and distribution partnership with Netflix in the hopes of starting its own digital video streaming service. Last week, Disney acquired majority ownership of BAMTech in a $1.58 billion deal. BAMTech is Major League Baseball’s interactive media and internet unit that provides video streaming for premium channels like HBO, NHL, PGA Tour and WWE. BAMTech claims to have around 7.5 million paid subscribers and this transaction values BAMTech at $3.75 billion. With more people migrating from cable TV to video streaming, this new partnership between Disney and BAMTech will help position Disney as a major player in the booming video streaming space and enable the company to be competitive amidst evolving consumer viewing habits. Furthermore, BAMTech will collaborate with ESPN to launch a “multi-sport” subscription streaming service for live regional, national and international sporting events.

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